(a)
Authority. This part
* is issued under the authority
of section 19 (12 U.S.C. 461
et seq.) and other provisions
of the Federal Reserve Act and of section 7 of the International Banking
Act of 1978 (12 U.S.C. 3105).
(b) Purpose. This part relates to reserve requirements
imposed on depository institutions for the purpose of facilitating
the implementation of monetary policy by the Federal Reserve System.
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(c) Scope.
(1) The following depository institutions
are required to maintain reserves in accordance with this part:
(i) Any insured bank as defined in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813(h)) or any bank that is eligible to
apply to become an insured bank under section 5 of such act (12 U.S.C.
1815);
(ii) Any
savings bank or mutual savings bank as defined in section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813(f), (g));
(iii) Any insured credit
union as defined in section 101 of the Federal Credit Union Act (12
U.S.C. 1752(7)) or any credit union that is eligible to apply to become
an insured credit union under section 201 of such act (12 U.S.C. 1781);
(iv) Any member as
defined in section 2 of the Federal Home Loan Bank Act (12 U.S.C.
1422(4)); and
(v)
Any insured institution as defined in section 401 of the National
Housing Act (12 U.S.C. 1724(a)) or any institution which is eligible
to apply to become an insured institution under section 403 of such
act (12 U.S.C. 1726).
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(2) Except as may be otherwise provided by the Board, a foreign bank’s
branch or agency located in the United States is required to comply
with the provisions of this part in the same manner and to the same
extent as if the branch or agency were a member bank, if its parent
foreign bank (i) has total worldwide consolidated bank assets in excess
of $1 billion; or (ii) is controlled by a foreign company or by a
group of foreign companies that own or control foreign banks that
in the aggregate have total worldwide consolidated bank assets in
excess of $1 billion. In addition, any other foreign bank’s branch
located in the United States that is eligible to apply to become an
insured bank under section 5 of the Federal Deposit Insurance Act
(12 U.S.C. 1815) is required to maintain reserves in accordance with
this part as a nonmember depository institution.
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(3) Except as may be otherwise provided
by the Board, an Edge corporation (12 U.S.C. 611 et seq.) or
an agreement corporation (12 U.S.C. 601 et seq.) is required
to comply with the provisions of this part in the same manner and
to the same extent as a member bank.
(4) This part does not apply to any financial
institution that (i) is organized solely to do business with other
financial institutions; (ii) is owned primarily by the financial institutions
with which it does business; and (iii) does not do business with the
general public.
(5)
The provisions of this part do not apply to any deposit that is payable
only at an office located outside the United States.
